DoubleLine Capital’s Jeffrey Gundlach is repositioning some of his funds for an extreme scenario: He thinks the US government might restructure its debt.

His worry is the government, in a bid to reduce its interest payments during a severe slowdown, might decide to lower the coupons on all outstanding debt. In an interview with Bloomberg, he gave the example of the US potentially reducing coupons to 1% from 4% without changing the maturity of the debt.